Company Financial Distress
— The Possibilities And The Pitfalls
There sometimes comes a time when a director needs to conclude that their company is not going to start making a profit and they need to close it down. This is never an easy decision, is often taken as a personal failure and leaves the director with the question of whether to start a new business or look at trying to find a job, in either case the need to make a living. There may also be the unpleasant prospect of making employees redundant.
It is also important to recognise that a director has a responsibility to the company and to its creditors to act responsibly and can be criticised, disqualified from acting as a director (and in extreme cases made to make a contribution) if they fail to cease trading when they should realise the company is not going to be able to turn things around and the debts get worse.
By definition most entrepreneurs are and need to be optimistic and to assume that they will be able to improve the situation. However there comes a time when they are not doing themselves or their creditors any favours by continuing to trade and they need to consider closing down.
For a FREE confidential 50 minute face-to-face or telephone conversation to discuss whether your client should close down call Fiona Monson on 01444 848766.
WHAT WE DO...
Company Solvent Liquidations
A simple strike-off may not be the most tax-efficient - or even the safest - way to release a client's equity for a company. Find out here how you can have access to our specialist Company Solvent Liquidations experience.
Company Insolvent Liquidations
There can be significant implications for your client in deciding whether or not they should cease trading due to debt or cash flow issues. Don’t risk giving them the wrong advice — discover more here...
Personal Financial Distress
For a client in financial distress, the experience can be terrifying and humiliating. With experienced, professional and sympathetic support, however, there is always a light at the end of the tunnel. Find out here how we can help you help your clients through their darkest hour.
HOW TO FIND OUT MORE...
If you have a client whose case you would like to discuss, or if you are facing financial difficulties yourself and need to talk to someone in confidence, then please do get in contact:
Phone: 01444 848766
Or you can find our address, a map and an enquiry form on our Contact Us page.
Financial problems, whether business or personal, can seem like the end of the road and can be a source of great distress. Rest assured that there is always a way ahead, and we will always listen with an open mind and a non-judgmental ear.
We of course treat all discussions with the utmost discretion.
Solvency Solutions is a trading name of Solvency Solutions (South East) LLP (formerly Armida Business Recovery LLP).
Fiona Monson is licensed as an insolvency practitioner by the Institute of Chartered Accountants in England and Wales